All 24 of Vow Financial’s shareholders have accepted Yellow Brick Road’s offer to buy the mortgage aggregator, valued at $17.6 million.
Vow will add $18.5 billion worth of mortgages to aggregator YBR's $2.7 billion loans under management – a boost of nearly 700%.
YBR announced on 6 May it had made an offer to buy 100% of Vow’s shares and on 7 May 40% of shareholders had accepted.
Since the offer has now been fully taken up, no drag-along or compulsory acquisition procedures will be necessary, said a statement from the company on the ASX yesterday.
Vow’s shareholders were offered three payment options – 100% YBR shares, 100% cash or 80% cash and 20% shares.
Shareholders who chose to take 100% YBR shares included Macquarie Bank, a 19.7% shareholder in Vow and an existing 14.8% shareholder in YBR, and Trelayne Brown, a company controlled by Vow CEO Tim Brown.
Overall, YBR will pay out 63% in cash, worth $11,114,498 of the acquisition, and 37% shares at $0.70 each, worth $6,487,077.
The offer remains subject to a number of conditions, including YBR shareholders passing various approval resolutions required under the ASX listing rules and the Corporations Act.
A general meeting of YBR shareholders is expected to take place mid-July, with the acquisition expected to be completed on 31 July.
YBR chairman
Mark Bouris said that operations at Vow will continue as normal – functioning as a separate division within the YBR group, with Tim Brown remaining as its chief executive.
This will allow a smooth transition and help brokers and lenders accept the new ownership, Brown added.
Vow chairman Dr Peter Neustadt said the sale fitted in with Vow’s business strategy.
“This is a welcome strategic move for the Vow business. YBR’s marketing and product manufacturing capabilities and partners will be key assets in growing Vow’s and the Vow brokers’ mortgage volumes, as well as introducing YBR’s wealth management products and experience.”
This is not the end of YBR's acquisition plans. As reported by
Australian Broker in March, YBR is in "exclusive talks" with a consumer product comparison website and lead generation group and a mortgage manager.
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